US banks closed 123 branches and opened 80 in October, bringing the total number of active bank branches at the end of the month to 77,690.

There were 43 net branch closings in the month, down from 73 in September and well below the trailing-12-month average of 117, according to S&P Global Market Intelligence data. The slowdown comes as banks have been striking a balance between cutting branches and maintaining physical distribution to compete.

Wells Fargo again leads net closers

For the second-consecutive month, Wells Fargo & Co. was the most active net branch closer shuttering 30 locations. Six of those closures were in California, and the bank did not open any new branches during October. Wells Fargo has closed 256 branches in the last 12 months and opened a dozen.

U.S. Bancorp ranked second with eight closings, followed by New York Community Bancorp Inc. with seven. The companies did not open any branches in October.

New York Community plans to allow legacy Flagstar Bancorp Inc. branches, which make up 40% of its franchise, to open accounts online in 2024, Reginald Davis, New York Community's senior executive vice president and president of banking, said on a third-quarter earnings call. New York Community completed its acquisition of Flagstar Bancorp in December 2022.

New York Community this year started using targeted digital marketing in its footprint to drive new client acquisition and unveiled "a new skinny down version" of its AI-powered client relationship tool in its branches, Davis added.

Capital One Financial Corp. was also among the most active net branch closers as it shuttered three branches with no openings. One of the drivers of the company's marketing levels is its investment in building its national bank, Chairman, CEO and President Richard Fairbank said on a third-quarter earnings call.

"As we have a smaller branch footprint, our growth is powered by modern technology compelling digital experience, a cafe presence in heavily traveled locations across the nation, and ... a sustained investment in marketing," Fairbank said.

JPMorgan Chase & Co. led the net branch openers with 22 openings and 14 closings. In the last 12 months, the company has opened 157 branches and closed 163.

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Closings in the West

The West region booked the largest number of net branch closings in October with 30. The Midwest region came in second with 19.

Meanwhile, the Southeast region logged the most net branch openings with six.

California logs most closings

On the state level, California experienced the most net branch closings with 14, followed by Illinois and New York with six each.

Arkansas posted the most net branch openings during the month with five. North Carolina and Tennessee were tied in the second spot, booking three net openings each.